National Republican. (Washington City (D.C.)) 1872-1888, 1887-06-24
PRONOUNCED SOUND.
The Position OF tho Republican
in Regard TO the Issuance OF Bonds.

in Regard TO the Issuance of Bonds.
EDITOR NATIONAL REPUBLICAN: AS re-
qusted by you have made an examination
Of the laws relative to the question raised
in your editorial OF the Republican Of the
22d inst. The legislation is az follows.
March 10, 1863 doth Stat, y Congress
passed nm act which, after declaring that
the faith Of the United States was solomnly
pledged TO the payment In coin or It's
equivalent OF alt the obligations OF the
United States, &c, provides as follows;
"But none OF the Understanding obliga-
lions not already due shall be redeemed or
paid before maturity, unless at such time
United States notes are convertible into
coin at the option Of the holder, or unless
at such time bonds OF the United States
bearing lower rate OF interest than the
bonds to be redeemed can be sold ut par In
coin."
July IA, 1870, was passed Gan act to au-
thorize the refunding OF the national debt,n
the first section OF which provides for the
issue OF bonds amounting In the aggregate
to 81, SOC, 600, 000 5000 600, 900 Of which were
to bear interest at the rate Of 8 per cent. +,
redeemable at the pleasure Of the United
States after ten years from the date or their
issue; $500, 1000, coo at AZ per cent, payable
at the pleasure OF the United States after
fifteen years from the date Of issue; l,000,
900, GOO at 4 per cent, payable at the pleas
ure Of the United States after thirty years
from the date Of issue.
Subsequent legislation somewhat changed
| the proportions OF these issues, so that the
amount Of the 5 per cent, bonds were In.
| creased, and the other two series were
| diminished, and presume the figures IN
| your article as to the amount unpaid OF the
| Al per cent. bonds being $3.50, 900, 600, and
Of the Der cent. $727 900, 900 to be correct
do not deem It material to rest the quesI
tion as to the effect of the law of 1869 upon
the Issue Of these bonds under the act OF
1870, provided that those two acts stood by
themselves, for the reason that prior to the
| issue OF the two latter series Of bonds Con-
gross revised the statutes Of the United
| States, re.enacting some portions and re.
pealing other portions of the statutes.
Bin this revision Congress re-enacted the &C,
OF 1869, with some slight changes, but re
tanning that portion above quoted (sectiou
3693). In this revision also Congress re-
enacted portion Of the act of 1870, being
part Of sections and OF the act, the lat
ter authorizing the Secretary Of the Treas
ury to pay off the five-twenty bonds, which
had become or should thereafter becom,
redeemable by the terms Of their issue. Th
effect of this re-enacting those portions 4
the statute operates as a repeal OF the RI
| mainder OF the statute, and among the SCI
lions so repealed was the section authori.
ing the issue OF the bonds authorized Il
the act Of 1870.
do not desire to raise any question as 10
the lawful issue OF the bonds, after TIL
Il repeal Of the statute, but l am Of the opin
ion that the bonds so issued were subject t,
the conditions and right of the Unite'
States to redeem or pay them, as provide
in the act Of 1869, reenacted in the reyisisr
| of the statute.
1t will be remembered that the 500 boil:
were issued long prior to the act OF 1870,
and therefore the holders of those bonls
could not be affected by the act of 1869, at1
so II was In the revision Of the statute ESQ
| 3697) that right was conceded.
On Mar. 3, 1875, Congress again authd-
lied the Secretary Of the Treasury to =
deem such bonds and to give notice to tie
holders to present them. (1Sth Stat, 37t
Again, on the 9th January, 1879, Congress
authorized the Secretary in the process 81
refunding the national debt under existig
laws to exchange directly at par the bod:
Of the United States bearing per cent. b.
terest for the outstanding and uncalled SIC
bonds. go Stat, 265). A. L. NJ
WASHINGTON, D. c., June 90, 1887.